Online reported that Coinbase's first-quarter revenue fell 12% month-on-month to US$2.03 billion, and trading revenue fell nearly 19%. Several analysts lowered their second-quarter and full-year revenue forecasts. JPMorgan pointed out that "institutional trading volume fell 30% month-on-month" and the institutional expense ratio also fell from 4.1 basis points to 3.1 basis points. However, Coinbase's $2.9 billion acquisition of Deribit, the world's leading crypto-derivatives exchange, is considered a "bold bet in the derivatives space." Bernstein called the valuation "reasonable" and Canaccord believed the deal would "prepare for U.S. regulatory approval of crypto options." In addition, subscription and services revenue increased 9% to $698 million, and the USDC balance on Coinbase increased nearly 50% to $12.3 billion, driven by USDC adoption. Canaccord calls its "Coinbase as a service" strategy to "hedge trading cycle fluctuations," and Coinbase is still regarded as the "gold standard" in the digital asset space.